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To: sammaster who wrote (91490)	4/8/2001 12:25:49 AM
From: Ilaine	Respond to of 436258

>>i guess the creditors will be the first to get their money back in case of bankruptcy<< Not "creditors", but "secured creditors." The difference between being unsecured and secured is the difference between having a promise (unsecured) and a lien (secured). A lien attaches to the bankrupt's estate "like a barnacle." Liens don't get paid pennies on the dollar - "first in time is first in right." The first lienholder gets paid, and if there is anything left, the second lienholder gets paid, and so on down the lien. Line, I mean. After the lienholders get paid, the unsecured creditors get paid (do the words "fat chance" mean anything to you?) For example - if you have credit cards, that's unsecured debt. If you have a car note, that's secured, but only by the car. Unsecured debt can be converted to secured debt by getting a judgment against the debtor - but the bankruptcy stay prevents creditors from filing suit without permission of the bankruptcy judge - again, "fat chance."